Meeting Minutes 2017-10-11

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8 MINUTES OF REGULAR MEETING

October 11, 2017

The Board of Directors (the “Board” or “Directors”) of Montgomery County Municipal Utility District No. 8 (the “District” or “MCMUD 8”) met in regular session, open to the public, on Wednesday, October 11, 2017, at 9:00 a.m., at the Montgomery County Sheriff’s Office, District 5 Patrol Division, located at 11901 Walden Road, Montgomery, Texas 77356, a designated meeting place located inside the boundaries of the District, and the roll was called of the duly constituted officers and members of the Board, to-wit:

John Tryon – President
Bob Leasure – Vice President
Margie Barlow – Secretary
Daniel L. Davis – Assistant Secretary
John L. Patton – Director

All members of the Board were present.  Also attending were Katherine Turner of Municipal Accounts & Consulting L.P. (“Bookkeeper”); Erich Peterson and Justin Abshire of Jones | Carter (“Engineer” or “Jones Carter”); Philip Wright of Hays Utility North Corporation (“Operator” or “Hays”); David Hartman, General Manager of Walden Community Improvement Association (the “WCIA”); Linda Wilson of Montgomery County Municipal Utility District No. 9 (“MCMUD 9”); Elliot M. Barner of Radcliffe Bobbitt Adams Polley PLLC (“Attorney” or “RBAP”); and all persons on the attached Attendance Roster.

The President, after finding that the notice of the meeting was posted as required by law and determining that a quorum of the Board was present, called the meeting to order and declared it open for such business as may come before it.

DRAINAGE REPORT

Mr. Abshire first provided an update to those in attendance regarding the status of the drainage project.  Mr. Abshire then reminded those in attendance that the District had determined to design and construct the drainage improvements in the various zones identified in the Jones Carter’s drainage investigation (the “Investigation”). Mr. Abshire reported that Jones Carter is nearing completion of the preliminary construction drawings for the drainage improvement project (the “Drainage Improvements”) and anticipates being ready to submit for local agency review within the next two (2) weeks.  Mr. Abshire also reported that Jones Carter continues to coordinate with Mr. Barner on the necessary easement and property acquisitions for the Drainage Improvements. Mr. Abshire added that according to the current estimated project schedule, Jones Carter expects to begin construction on the Drainage Improvements in early 2018.

Mr. Abshire also reported that he is in the process of scheduling a meeting with those residents that were affected by the most recent storm event (the “Hurricane”) to obtain further information from them for inclusion in the Investigation.

 

In response to a question regarding addition of landscaping around the Drainage Improvements, Mr. Abshire explained that landscaping around such improvements will be discussed further at a future date after design is completed.

PUBLIC COMMENT

There were no additional public comments.

APPROVAL OF MINUTES

The President next directed the Board to the approval of the minutes of the special meeting of August 31, 2017 and the regular meeting of September 13, 2017.  Upon a motion by Director Patton, seconded by Director Davis, after full discussion and with all Directors present voting aye, the Board approved the minutes of the special meeting of August 31, 2017 and the regular meeting of September 13, 2017, as presented.

TAX ASSESSOR-COLLECTOR’S REPORT

Ms. Turner then reviewed the Tax Assessor-Collector’s Report for the month of September 2017, a copy of which is attached hereto, including past monthly collections and credits as reported by Tammy McRae, Tax Assessor-Collector for the District.  Ms. Turner reported that 98.76% of the 2016 taxes have been collected as of September 30, 2017.  Ms. Turner discussed sending letters to taxpayers regarding delinquent tax accounts and indicated that she would contact the Delinquent Tax Attorney.

BOOKKEEPER’S REPORT

Ms. Turner next reviewed the Bookkeeper’s Report, a copy of which is attached hereto, including the current fund balances, expenditures and investments.  Ms. Turner then reviewed current year-to-date revenues and expenditures against the budget.

Ms. Turner also reviewed a Snap Shot Financial Report as of October 11, 2017, and a Revenue and Expenditure Comparison for 2016 and 2017 as of October 11, 2017, copies of which are attached to the Bookkeeper’s Report.

Ms. Turner then presented the Wastewater Treatment Plant (“WWTP”) proposed budget for 2018, a copy of which is attached hereto.

Upon a motion by Director Patton, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board:  1) approved the Bookkeeper’s Report, as presented; 2) authorized payment of checks numbered 8060 and 8067 through 8102 from the General Operating Fund; 3) authorized payment of check numbered 1189 from the Capital Projects Fund; and 4) authorized payment of checks numbered 1749 through 1752 from the Sewage Treatment Plant Fund.

ENGINEER’S REPORT

Mr. Abshire presented the Engineer’s Report, a copy of which is attached hereto.

Mr. Abshire first reported that Jones Carter continues with the design phase of the 1.25 MGD Biological Nutrient Removal Wastewater Treatment Plant (“WWTP”) Project.  Mr. Abshire also reported that Jones Carter expects plans to be submitted to local agencies for review by the end of October and approvals are expected by the end of the year.  Mr. Abshire added that the sixty percent (60%) client progress meeting is scheduled for October 12, 2017.

Mr. Abshire then reported that Jones Carter awaits receipt of the revised draft WWTP TPDES permit and memorandum from the Texas Commission on Environmental Quality (the “TCEQ”).

Regarding Bond Application Report No. 7 (“BAR”), Mr. Abshire reported that Jones Carter submitted the BAR to the TCEQ for 45-day expedited review and anticipates review to be completed by the end of November.

Mr. Abshire next reported that the TCEQ requires water plants to be inspected on an annual basis.  Mr. Abshire went on to report that Jones Carter conducted the District’s water plant inspections in October 2016 and requested authorization to conduct the 2017 annual water plant inspection of Water Plant Nos. 1 and 2.

Upon a motion by Director Leasure, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board approved the Engineer’s Report, as presented, and authorized the Engineer to conduct the 2017 annual water plant inspection of Water Plant Nos. 1 and 2.

OPERATOR’S REPORT

Mr. Wright then presented the Operator’s Report, a copy of which is attached hereto.  Mr. Wright reported that the combined water accountability for the District and MCMUD 9 was 96.56%.  Mr. Wright next reported that the District had three (3) paid taps last month and the District has a total of 1,698 connections.

Mr. Wright reviewed the list of service termination notices and noted that 199 notices were mailed and no accounts were terminated.

Mr. Wright next reported that a water leak had developed along Poe Street and Hays is determining the necessary repairs to the water line.  Director Leasure reminded the Board that the District is owed water by MCMUD 9 according to the Operator’s Report.

A discussion then ensued regarding infiltration and inflow (“I&I”) to the WWTP and various projects that have been performed by MCMUD 8 and MCMUD 9 to reduce and improve the waste collection system.  Mr. Peterson suggested that manholes near Lake Conroe and lift station run times be more carefully examined to determine ways that I&I might be further reduced.

Mr. Wright next presented the Operator’s Contract Amendment, a copy of which is attached hereto.  Discussion ensued.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the Operator’s Report, as presented; and approved the Contract Amendment, subject to receipt of a Form 1295 Certificate of Interested Parties.

Next, the Board discussed the District’s Rate Order.  Upon a motion by Director Barlow, seconded by Director Davis, after full discussion and with all Directors present voting aye, the Board approved the Rate Order, effective beginning with the District’s next billing cycle.

WALDEN COMMUNITY IMPROVEMENT ASSOCIATION

Director Tryon reported that the WCIA has recently suspended review and approval of  construction plans submitted by a developer to the Walden Architectural Control Committee because it was determined such developer’s surveyor was submitting incorrect information.

MCMUD 9

It was next reported that Alsay Incorporated is anticipated to perform certain tests this week on the well at MCMUD 9’s Buckingham Water Plant.

WEBSITE REPORT

Director Patton reported that visits to the District’s website appear to be increasing.

ENGAGEMENT OF MARK BURTON

Mr. Barner and Ms. Turner next discussed with the Board the necessity of engaging Mark Burton to prepare additional financial statements for the District in order to comply with Texas Water Development Board (the “TWDB”) requirements.  Mr. Barner recommended that the District authorize engaging Mark Burton, subject to Mr. Barner’s confirmation with the TWDB that such financial statements were still required, since the District’s loan from the TWDB was now closed.  Upon a motion by Director Barlow, seconded by Director Davis, after full discussion and with all Directors present voting aye, the Board authorized engaging Mark Burton to prepare the necessary financial statements, subject to Mr. Barner’s confirmation that such statements were required.

EXECUTIVE SESSION

Pursuant to Chapter 551 of the Texas Government Code, Subchapter D, of the Open Meetings Act, the President called the executive session to order at 10:43 a.m. to discuss matters within the attorney/client privilege.  Present for the executive session were the Board of Directors and Mr. Barner.  As of 10:45 a.m., the President declared the Executive Session was ended and the public session was resumed.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved action on items discussed in Executive Session.

 

 

BED AND BANKS PERMIT

Mr. Barner reported that he is in the process of scheduling a conference call with Mrs. Carolyn Ahrens and Mr. Clark Lord to discuss the necessary next steps regarding Bed & Banks requirements.

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned.

October 11, 2017 Minutes Signature